The state-owned enterprise (SOE) Forests of Ukraine intends to save more than UAH 250 million on procurement of services and goods in 2023, the director general of the state-owned enterprise, Yuriy Bolokhovets, has said.

"Transparent procurement is one of the components of the forestry industry reform. We buy in bulk, much cheaper. We buy at competitive auctions, where on average from three to five participants participate," he wrote on Facebook.

According to his information, UAH 41.7 million have already been saved on fuel, UAH 9.4 million on electricity, and almost UAH 4 million on tires for vehicles and specialized equipment. Procurement continues, so savings may increase.

"We not only save a lot of money. Transparent procurement also means removing the industry from the shadow," Bolokhovets said.

As an example, he cited the procurement of land management services, which is now carried out through ProZorro system. Previously, when forestry enterprises entered into contracts, the principle of pricing was nontransparent and prices could vary several times depending on who procures from whom, the general director of the enterprise recalled.

Bolokhovets said that in 2023, land management was procured for 214,000 hectares and the price at the auction was reduced by almost 80%.

In addition, Forests of Ukraine was able to de-shadow the procurement of insurance, machinery and equipment. During open bidding for compulsory insurance services for 6,700 vehicles, the price was reduced by more than 67%. And when purchasing equipment for tillage, the state-owned enterprise paid almost 30% less.

"Transparent procurement is the creation of conditions for business development and the formation of new market segments," Bolokhovets said, adding that Forests of Ukraine intends to transfer procurement of timber logging services to ProZorro soon.